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-   -   Cafe Coffee Day shutting down unprofitable outlets (https://www.team-bhp.com/forum/shifting-gears/213830-cafe-coffee-day-shutting-down-unprofitable-outlets.html)

Understand that Cafe Coffee Day has shut down 385 branches all over India last month. A quick check over google doesn't reveal this information. Personally know of at least a couple that have been shut in the last month.

Information from sources within the company reveal that there has been a decision to shut down loss making branches which actually could be the vast majority other than the ones in malls and CBD areas.

CCD were saviours for road warriors as they had outlets in locations that others didn't actually dare to put up outlets.

Probably part of the reason they are closing down outlets is that most of these didn't turn out to be profitable.

Oh no! CCD has been a saviour during long drives. They always have clean washrooms and they usually have good food.
I really hope they only shut down those outlets which aren't making a lot of money and not all of them.

Attaching a picture of the one on the Bangalore-Hubli highway that had a really clean washroom and good coffee.

I wake up to coffee from CCD, their coffee decoction has had me and my family hooked. Would be sad to switch to any other brand.

An investor should pick up CCD and keep it intact. It's part of our growing up years!

Amazing just how good a reputation CCD has, both with customers as well as among coffee growers. Siddhartha truly manages to create an edifice of Indian entrepreneurial spirit. Yet, the way he went..... Sometimes you can do just about everything right but still things happen.

For what it’s worth, me and my wife decided to get married during a date at a CCD.

Closing down loss making outlets makes financial sense so that the profitable ones stay afloat. I have seen so many outlets in remote areas which made no sense from a business point of view. Their tie up with HP pumps also contributed to this. In India I can vouch no one does Kaapi better than CCD, their Kiosks included. Can't get better coffee than this!

CCD is not shutting down, just the unprofitable branches. That is a good idea, it stops the cash bleeding to a great extent and allows the company to bounce back.

I have been a regular at CCD since a long time now. Of late after the CEO passing away, the quality took a thorough beating.

* Outlets were no longer neat & clean, dust on floor, dirty tables & chairs, flies/mosquitos infestations.

* Staff looked dis-interested, Ill-trained, would talk to each other loudly, not inclined to return change.

* Quality of coffee down, cutlery dirty.

* No light music in the background, no good TV channels put on, only adds of some brands keep repeating, No newspapers or books offered.

* AC switched off in peak of summers to save electricity Bills.

* Inconsistency in coffee flavours.

* Poor quality, unhygienic food, probably cold chain not maintained. Eatables are all frozen, nothing cooked fresh at the outlet.

This is the state of not one outlet but an average taken out of over around 30 outlets that I visit, not just in my City but other Cities & adjoining areas. So I see this chain going down. Quality is not being maintained.

It was coming. The debt the company is under is quite high, some drastic measures are required. The company also sold off their Tech park in Mysore road to reduce their debt.

CCD outlets were my first choice of meeting place for any personal or official meetings as they are well spread across the city. Though I don't like their coffee, the other facilities made up for it.

I always considered CCD as a temp workspace where you with buying coffee.
Now Starbucks have taken over some of our meetings, again don't like their coffee either. I prefer filter coffee and nothing else.

I hope CCD manages its current situation and bounces back. It’s too good to go.

Is this an old issue or new? The CEO died in middle of monsoon, and the next summer is in 2020.

So up North, the season post/during the monsoons is the worst with humidity levels at an all time high. AC in this season before winter starts setting in, which is about 2-2.5 months is a must, coolers are simply not suitable due to already too humid weather. I think due to overall decline in quality post CEO, which has resulted in low overall sales, they have entered into a mode wherein they are having to save each & every penny to keep the ball rolling. Many old & trained employees have already said goodbye to the company due to not much clarity on future operations. New un/ill trained staff is again aiding in further decline in quality. Hence the company is already caught up in a downward spiral. If substantial measures are not pro actively taken now, shutting down most outlets to cut costs would be the only alternative left.

They should consider switching to the asset light model of doing business by franchising the outlets with very stringent terms and conditions to keep up the brand reputation. This would help them focus on the core and improve the profitability by off loading the balance sheet.

I guess his indication was that since it's a "premium" coffee shop, AC should be available all the time as is the case with all the premium food outlets and offices. And it's not too much to expect. I get your sarcastic comment by the way.

Well, then you got something I didn't say.

Since he mentioned AC switched off in peak of summers, I merely asked him whether he is referring an older issue he has seen in CCD.